Arista Networks Inc

Arista Networks delivered another strong quarter in Q1 2026, <a href="https://247wallst.com/investing/2026/05/05/live-arista-networks-is-reporting-q1-earnings-can-anet-continue-its-32-ytd-rally/">extending its earnings momentum</a> with non-GAAP diluted EPS of $0.87, beating the $0.81 consensus estimate by 7.73% and marking the company's fourth consecutive quarter of beating EPS expectations. Revenue came in at $2.71 billion, topping estimates by 3.45% and representing 35.1% growth from a year ago, with product revenue climbing to $2.31 billion from $1.69 billion as demand for AI networking infrastructure remained robust. Operating cash flow more than doubled to $1.69 billion, bolstered by a $826.20 million swing in deferred revenue, reflecting the scale of customer commitments flowing through the business. Gross margins compressed modestly to 62.4% on a non-GAAP basis from 64.1% a year ago, a shift analysts have tied to the mix toward higher-cost AI networking buildouts, though non-GAAP operating margin held steady at 47.8%. Management guided Q2 2026 revenue to approximately $2.80 billion with non-GAAP EPS of roughly $0.88, signaling continued confidence despite a dynamic macro and supply chain environment.